Posted by David Butler on April 15, 2007 at 20:16:20:
Mike, Anne, and Jason both have asked some good questions here that can go a long way in possibly finding a solution to your present dilemma. Best bet now may be to give precise information:
You stated that the property is in Riverside County, California. That’s a huge County, with many smaller demographic areas to consider?! Where precisely? Do you have current market research for that area?
Also, ou also stated that the property has good equity in it. What is the estimated FMV today? You mentioned you listed the property - did you interview at least three RE agencies? Regardless, did you obtain CMA’s (Comparative Market Analyses) from whatever real estate companies you did interview? Did you set the price, or did they? Does that price indicate a reasonable basis for FMV compared to comparable sales provided in the CMA’s you received?
What is owed as an outstanding principal balance on the existing 1st lien loan you took title to the propert “subject to”…?
What type of a loan is it? Fixed, ARM, What is the interest rate, monthly P & I payment, PiTi Payment? etc.
Is this loan current at this time?
Have you done sufficient research to determine the street rent for the property?
Do you have any clear ideas as to Why you have been unable to sell?
You also mention that “We have considered renting, L/O and Wraps however we have been unsuccessful.” Why were you unsuccessful, specifically, with regard to…
“Renting this property will give us negative cashflow.” Okay… what kind of cash flow did you get by NOT renting the property? Why won’t a L/O or wrap be done to work around that?
“We were unable to sell the property on a wrap!” Why were you unable to sell the property on a wrap?
Why did the property appraise for $630,000 but you are unable to do anything with it? Did you ever receive any kind of offers, and if so, why didn’t they fly?
None of us has a completely clear picture of what’s gone on, and why - other than it appears you may have overpaid for the property. But you should have some handle on things. If for no other reason than frustration. The missing answers to all of the above questions will allow for solutions… if solutions can be found. So what are the answers?!
Then hopefully we here can find a solution that will meet your needs. And best wishes for your success!
David P. Butler